Context:
REC Limited, a Maharatna and a Central Public Sector Enterprise (CPSE) under the Ministry of Power, has achieved a significant milestone by issuing its inaugural Japanese Yen (JPY) 61.1 billion green bonds under the Global Medium Term Notes Programme.
Relevance:
GS III: Indian Economy
Dimensions of the Article:
- Yen Denominated Green Bonds by REC Limited
- About REC Limited
Yen Denominated Green Bonds by REC Limited:
- REC Limited’s eleventh international bond venture and its inaugural Yen Bond issuance.
- The first Yen Green Bonds issuance by any Indian Public Sector Undertaking (PSU).
Time Period and Yields:
- Bonds issued for 5-year, 5.25-year, and 10-year periods.
- Yields at 1.76%, 1.79%, and 2.20% for the respective timeframes.
Significant Records:
- Largest Euro-Yen issuance in South and South East Asia.
- Largest Yen-denominated issuance from India.
- Largest non-sovereign Yen-denominated issuance in South and South East Asia.
Investor Interest:
- Witnessed interest from Japanese and international accounts.
- Orders split at 50% from both Japanese and international investors.
- International allocation among the highest for any Indian Yen deal.
Bond Ratings and Listing:
- Rated Baa3/BBB–/BBB+ by Moody’s, Fitch, and JCR, respectively.
- Bonds to be listed exclusively on the Global Securities Market of India International Exchange (India INX) and NSE IFSC in GIFT City, Gandhinagar, Gujarat.
About REC Limited:
- Central Public Sector Undertaking under the Ministry of Power.
- Engaged in financing projects across the power sector value chain, from generation to distribution.
- Registered with the RBI as a Non-Banking Finance Company (NBFC), Public Financial Institution (PFI), and Infrastructure Financing Company (IFC).
